Selling a Property in Vancouver? Learn How to Avoid Lowball Offers and What to Do if Received.
In the current Vancouver real estate market, lowball offers are common due to suppressed demand caused by government regulations and taxes. Understanding what a lowball offer is and why they are prevalent can help you avoid receiving one when selling your property.
What is a Lowball Offer?
A lowball offer is an initial bid that is significantly lower than the asking price. This type of offer is common in a buyers' market like Vancouver, where demand is low and buyers want to get the best possible value for their money.
Why are Lowball Offers Common in Vancouver?
The real estate market in Vancouver is currently in a buyers' market due to government intervention and regulations, such as the B-20 mortgage stress test, the 20% Foreign Buyers Tax, the Speculation Tax, and the Empty Homes Tax. These measures have suppressed demand for properties in the city, making lowball offers a common occurrence.
How to Avoid a Lowball Offer?
To avoid receiving lowball offers, price your property based on market value. If your property is priced fairly, it will have a better chance of attracting multiple interested buyers and avoiding lowball offers. To get a comparative market analysis, contact a Real Estate Agent (like me), who can provide an accurate picture of the market value of your property.
What to Do if You Receive a Lowball Offer?
If you receive a lowball offer, don't get angry. Instead, respond with a counter offer. Negotiating with the buyer can often result in a price that works for both parties, as the buyer may just be bluffing with their lowball bid.
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